What does an unfavourable variance indicate?
Variant question
A)The actual amount decreased operating profit relative to the budgeted amount
B)Actual costs are less than budgeted costs
C)Actual revenues exceed budgeted revenues
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

An unfavorable variance indicates that the actual amount decreased operating profit relative to the budgeted amount, meaning that the actual costs exceeded the budgeted costs or actual revenues fell short of budgeted revenues. Therefore, B and C are incorrect options.

What Does an Unfavourable Variance Indicate